Is This the End of Netflix’s Basic Plan?
In a move that surprised many, Netflix has once again increased the price of its subscription plans in the U.S., France, and the U.K. Effective immediately, subscribers of both basic and premium plans are going to have to dig deeper into their pockets.
“Subscribers on the streamer’s basic or premium plan will see their bill go up from $9.99 to $11.99 and $19.99 to $22.99 respectively.”
The Surprise Twist: Farewell to the Basic Plan
Interestingly, if you’re a new subscriber hoping to save some money with the basic plan, you’re out of luck. Netflix has removed the option for new users. In contrast, existing subscribers will experience an “unpleasant surprise hike.”
“Netflix removed the basic option altogether, leaving only existing subscribers who will get the unpleasant surprise hike.”
Behind the Decision: Netflix’s Explanation
What’s fascinating is Netflix’s initial promise to ease off on the hikes, especially after the backlash over their password-sharing crackdown. However, in the company’s Q3 financial report, they provided a bit of a pivot in their stance.
“While we mostly paused price increases as we rolled out paid sharing, our overall approach remains the same – a range of prices and plans to meet a wide range of needs, and as we deliver more value to our members, we occasionally ask them to pay a bit more.”
Netflix’s Stellar Performance: A Paradox?
Despite all the controversies surrounding password sharing, the axing of the basic plan, and questions about pay equity for actors, Netflix isn’t hurting. The Q3 report showed they added 9 million new subscribers in the third quarter alone.
“The Q3 results revealed the streamer gained another 9 million subscribers between July 1 and September 30.”
The Elephant in the Room: Future Price Hikes
With Netflix waiting for the SAG-AFTRA strike to conclude, there’s a looming expectation that this won’t be the last price adjustment we’ll see. While we’ve had to stomach this recent increase, brace yourself for possibly more in the near future.
“With that supposed hike looming once the strike ends, it’s possible this won’t be the last near-term increase customers will be expected to bear.”
Netflix’s Controversial Year: The Bottom Line
Netflix has made some bold moves this year that have been met with both applause and boos. Whether you’re delighted with their growing range of content or irked by their sudden price changes, one thing’s for sure: Netflix continues to be a major player in the streaming world, price hikes or not.
So, what’s next for the streaming giant? Will they take more risks, or will they play it safe as they continue to dominate the market? Only time will tell, but for now, subscribers have a lot to think about.
